Liverpool Property Market Outlook 2018: What the experts say

Liverpool Property Market Outlook 2018: What the experts say

We go again. 2018 is upon us and the property world is geared up for another interesting year in the Liverpool housing market. But what does the next 12 months have in store?

Curated by Christine Toner

The past year has been a busy one for the property market in Liverpool. New developments have sprung up across the city. Large-scale schemes progressed with gusto while others came to a grinding halt. Student property continued to dominate the landscape while city centre living remained popular.

Now, looking ahead, 2018 appears set to be an equally exciting year – not least because the government’s decision to scrap Stamp

Duty for first-time buyers on properties up to £300,000 is expected to see a surge in interest from house hunters who have otherwise been holding back.

Here at Your Move we’ve brought together some of our trusted experts across all fields in property to find out their views on the 12 months ahead.

The Estate Agents…

Debra Beach – branch manager, Keppie Massie Residential

Stock levels are currently insufficient to match levels of demand from buyers and this imbalance could ultimately drive prices upwards.

There is speculation that more repossession stock will enter the market next year from lenders who have been sitting on property and this may have an effect on the balance of stock.

Moreover, interest rates remain low and there is more choice than ever from mortgage lenders, while overseas buyers should continue to be attracted by the weak pound.

Hopefully, signs of increased confidence among buyers will eventually be reflected by renewed vendor confidence and we will see a wider range of properties being made available for sale.

Demand for lettings will doubtless remain high, while rental availability may be further reduced as new tax changes come into play and force individual landlords to sell their properties.

The impending white paper on tenant fees will see landlords having to cover more costs. The fear is that this could ultimately lead to higher rents as supply remains out of sync with demand.

Helen Griffin-Booth – director, Bluerow Homes

With political and economic conditions remaining uncertain, there may be slower than expected house price growth in 2018 but this should bounce back once confidence and stability has returned.

Despite this uncertainty the residential market in Liverpool remains active, and the move to abolish Stamp Duty should act as an incentive for first-time buyers hoping to get on to the property ladder in 2018.

To see sustained levels of growth, housing supply needs to be a focus to ensure local families have access to affordable homes in the city.

Liverpool has a thriving private rented sector (PRS), with landlords enjoying some of the highest yields in the country. Rental property is in demand from both buy-to-let landlords coming into the market and existing landlords keen to continue investing.

I predict that PRS will grow yet again in 2018, despite stricter regulations, reductions in tax relief and the significant Stamp Duty tax rise.

The Solicitor…

Whilst the current political climate has caused some uncertainty, I think the property market will continue to be buoyant in 2018.

Continuing uncertainty around Brexit may defer some people from buying, with many would-be buyers weighing up and indeed waiting out potential outcomes. This, coupled with the increase in interest rates, could see many home owners staying put in the short to medium term.

In contrast though, the changes to Stamp Duty are likely to see more first-time buyers get a foot on the ladder given there could be a significant saving to them. Consider that money saved for Stamp Duty can now, for many, boost a deposit down payment.

Stamp Duty reforms have, however, slowed the buy-to-let market and I think next year will see no change to this.

On a positive note though, demand still outstrips supply and this is likely to continue into the new year – let’s hope we see some appetite from new home builders.

The Developers…

Daniel Hynd – managing director, Promenade Estates

Liverpool’s housing market hinges on its economy. The city’s jobs market is in reasonable shape but there are areas of under-performance which are holding us back.

If Liverpool could secure some of the footloose office-based jobs that seem to be migrating almost exclusively to Manchester then we’d give our housing market a real boost.

The values aren’t there to encourage speculative development of the offices these modern occupiers demand so we need local authorities that will provide help in the shape of things like rental guarantees to kick-start new office construction. Otherwise, those jobs will keep heading down the M62.

Across the city there’s a good supply of new suburban homes but it’s still a little skewed in the city centre towards small studio and one-bedroom apartments.

The economic fundamentals nationally remain positive and Liverpool’s economy has grown largely in line with its competitor cities, so our housing market should continue to grow and perform well.

Dave Smith – managing director, St. Modwen Homes

Going into 2018 we don’t expect to see the market slow down as the requirement for quality new build homes in the Merseyside area remains high.

As such, and as we prepare to launch our second development in the region, Tayleur Leas in Newton-le-Willows, we’re anticipating a steady demand for the government’s Help to Buy scheme, particularly from first-time buyers making the most of the recent changes to Stamp Duty.

In the wider market, we expect to see house price inflation ease so although house prices will continue to rise it will be at a slower rate.